Carlyle Credit Income (CCIF) Q2 2025 earnings summary

Executive summary

• Maintained monthly dividend at $0.105 per share (18.75%–18.8% annualized), supported by $0.49 of recurring cash flows for the quarter, and completed 13 CLO refinancings and resets to optimize the portfolio.

• Net investment income for Q2 2025 was $0.23 per share; adjusted NII was $0.26, and core NII was $0.27 per share, with NAV per share at $6.98 and total investments at fair value of $197.9 million.

• Sold 1.61 million common shares via ATM program for $12.2 million net proceeds and completed a private placement of 7.5% convertible preferred shares due 2030, raising $18.6 million.

• Portfolio comprised 61 unique CLO investments managed by 30 different managers, with exposure to 1,428 companies and diversified across major industry sectors.

• Net assets as of March 31, 2025, were $131,969,284.34, with total assets of $211,982,811.42 and total liabilities of $80,013,527.08.

Financial highlights

• Total investment income for Q2 was $8.6 million ($0.48 per share); net investment income was $4 million ($0.23 per share); adjusted NII was $4.6 million ($0.26 per share); core NII was $0.27 per share.

• Net asset value as of March 31 was $6.98 per share; total fair value of investments reached $197.9 million.

• Recurring cash flows per share were $0.49, supporting a quarterly dividend of $0.315 per share.

• Net realized and unrealized losses totaled $(7.1) million, resulting in a net loss of $(3.1) million for the quarter.

• Leverage ratio increased to 0.38x, with preferred equity principal balance at $80.5 million.

Outlook and guidance

• Volatility in the CLO and loan markets is expected to create opportunities for CLO managers to purchase loans at discounts and build par.

• Dividend guidance maintained at $0.105 per share monthly through August 2025, annualized at 18.75%.

• Portfolio positioned defensively with focus on high-quality managers and structures with ample reinvestment periods.

• Recurring cash flows rebounded in Q3 2025 to approximately $0.62 per share.

• No significant impact from loan repricings expected in the current quarter due to recent volatility.